Al Ahly Pharos

Pre-Trading Thoughts

March 31, 2024 Al Ahly Pharos
Al Ahly Pharos
Pre-Trading Thoughts
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The IMF Board completed the First and Second Reviews for Egypt and approved an augmentation of the original program by about USD5 billion, allowing the authorities to draw the equivalent of about USD820 million. 

Egypt will receive the first tranche of an expanded loan agreement with the IMF next week, Prime Minister said during a news conference. He added that it is expected to receive the second batch for the Ras El Hikma deal early May.

The EU intends to fast-track some of its aid money to Egypt using an urgent funding procedure that bypasses parliamentary oversight and other safeguards.

Foreign investment injected into treasuries have reportedly recorded between USD14 billion to USD16 billion.

A number of sectors and retail chains have begun to respond to the government's initiative to reduce commodity prices.

President El Sisi will officially begin his third term when he takes the constitutional oath on Tuesday before the House of Representatives in the New Administrative Capital. The inauguration will see the presidency begin its move to the New Capital.

The Finance Ministry raised some EGP25 billion worth of one-year t-bills and EGP35 billion worth of six-month bills on Thursday, with yields decreased on high demand. The average yield of the one-year bills dropped to 25.9% from a record high 32.3% earlier this month, while the six-month bills’ average yield dropped to 25.75% from 31.84%.

The government and local private players have signed several agreements with their Italian counterparts, which will see Italy pour over EUR150 million into Egypt, to back food security and support MSMEs. 

The SCZone has greenlit a number of projects.

The SCZone will create a route to transport green fuel produced in the zone to the Dutch Port of Rotterdam, which will help the fuel reach European markets, under an MoU inked between the two sides.

Norwegian paint manufacturer Jotun’s new USD100 million industrial paint and varnish factory has kicked off operations, according to a cabinet statement.

FTSE Russell decided not to strip Egypt and Pakistan of their emerging-market status for at least six-months, as a green light for passive stock funds to resume investing in these countries.

Egypt's agricultural exports grew by 25% YoY during 1Q2024, reaching USD1.5 billion.

Egypt is considering importing liquefied natural gas, aiming to avoid a fuel shortage during this summer.

Oil producer Capricorn Energy received a payment of USD30 million this week from the Egyptian government after its debt to the company rose to USD169 million last year.

ORAS (FV: EGP233.65, EW) subsidiary Orascom Industrial Parks received approval from the General Authority of the Suez Canal Economic Zone (SCZone) to develop and manage a EGP13 billion integrated industrial complex in the Sokhna Industrial Zone.

According to local media, EFID is interested in acquiring Bisco Misr; however, no official offer has been submitted nor has any procedure been taken. 

IDHC released 4Q23 full financials. Net attributable profit recorded EGP109 million in 4Q23 (-20.5% YoY, -38.7% QoQ). Attributable net profit dropped by 5.7% YoY to record EGP510 million in FY23. IDHC is currently trading at 2024f P/E of 14.4x and EV/EBITDA of 7.6x

The Sovereign Fund of Egypt aims to acquire a controlling stake in the company that owns Misr Pharmacies chain through its subsidiary fund specializing in healthcare. 

The FRA released its latest quarterly report on how non-banking financial services (NBFS) performed. 

NBE has acquired the Egyptian Arab Land Bank’s entire 24% stake in property developer Hyde Park Developments for an undisclosed sum.